- CMA CGM acquires a 48% stake in Santos Brasil, Brazil’s leading terminal operator, expanding its global presence.
- Santos Brasil operates 8 strategic assets, including container, vehicle, and liquid bulk terminals.
- The acquisition enhances CMA CGM’s terminal operations in Brazil and aligns with its sustainability goals, including deploying LNG-powered vessels.
CMA CGM Group is a global player in sea, land, air, and logistics solutions. It has announced its acquisition of a 48% stake in Santos Brasil Participações S/A. Santos Brasil operates multiple terminals in Brazil, with CMA CGM aiming to expand its presence in the country. CMA CGM plans to launch a public offer on the remaining shares in the coming months.
Strategic Asset: Tecon Santos
Santos Brasil’s flagship asset is the container terminal Tecon Santos, located in São Paulo. This terminal is the largest in South America, handling 40% of Brazilian volumes. It has a capacity of 2.5 million TEUs, which can be expanded to 3.0 million, and has three berth slots for handling 14,000 TEU ships.
CMA CGM is committed to supporting the development of Santos Brasil’s terminals, with a focus on expanding Tecon Santos’ capacity and improving service quality. The Group will also work with port authorities to foster the growth of the Port of Santos and other Brazilian ports.
Santos Brasil’s Diverse Operations
Santos Brasil operates 8 major industrial assets along the Brazilian coast, including 3 container terminals, 1 vehicle terminal, 1 liquid bulk terminal, and 3 logistics facilities. These assets are located in key locations, such as the Ports of Santos, Imbituba, and Vila do Conde, among others.
For the 12 months ending in June 2024, Santos Brasil generated revenues of BRL 2,549 million (USD 458 million) and an EBITDA of BRL 1,284 million (USD 230 million), reflecting the strong financial position of the company.
CMA CGM’s Strategic Move in Brazil
CMA CGM’s acquisition is part of its broader strategy to enhance its presence in Brazil. It was also to offer improved services to Brazilian exporters and importers. The Group aims to increase the combined capacity of Santos Brasil terminals to meet global demand and enhance service quality.
CMA CGM will continue pursuing the decarbonization initiatives started by Santos Brasil. The Group has already deployed liquefied natural gas (LNG)-powered vessels in Brazil, reinforcing its commitment to sustainable and eco-friendly maritime transport.
Synergies with Mercosul Line
CMA CGM’s acquisition of Santos Brasil complements its existing operations in Brazil, including its partnership with Mercosul Line. Mercosul, acquired in 2017, is a key player in the Group’s coastal shipping and intermodal solutions.
The synergies between Santos Brasil and Mercosul Line will further strengthen CMA CGM’s position in the region.
CEVA Logistics in Brazil
CEVA Logistics, CMA CGM’s logistics arm, plays a critical role in the Group’s operations in Brazil, offering door-to-door solutions across 36 sites with 530,000 sqm of warehouses.
employs 7,500 people in Brazil, contributing to the Group’s comprehensive logistics network.
Timeline of the Transaction
The closing of the transaction with Opportunity Funds is expected in Q1 2025, subject to regulatory approval from Brazilian authorities.
After the acquisition, CMA CGM will launch a mandatory tender offer for the remaining shares of Santos Brasil, in compliance with Brazilian market regulations.
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Source: CMA CGM
